WASHINGTON, October 12, 2008 -- African Ministers of Finance have urged developed countries to maintain pledged levels of aid to African countries despite the volatility of the international financial markets.
At a press conference held Saturday, October 11, at International Monetary Fund Headquarters in Washington, D.C., Ministers Mousa G. Bala-Gaye of the Gambia and Essimmi Menye of Cameroon, and Acting Minister of Finance John Michuki of Kenya, said their governments were still studying the possible implications of the financial markets meltdown in order to prepare to take steps to mitigate any potential fallout. They urged donors to offer flexible programs in support of Africa’s development efforts.
The African Development Bank is expected to organize a seminar in November to explain how the crisis could affect Africa.
From left to right, Hon. Mousa G. Bala-Gaye, Secretary of State for Finance & Economic Affairs, The Gambia; H.E. M. Essimi Menye, Minister of finance, Cameroon;Hon. John Michuki, Ag. Finance Minister, Kenya
Michuki suggested that the problems global markets are experiencing could have been avoided had developed countries adhered to IMF financial management tenets. “Who is going to compensate innocent countries that are going to be affected by this downturn?” he asked.
He said the effect of the fallout on economies of such countries as Kenya would depend on the steps their major trading partners, Europe in particular, intend to take to contain the crisis. The ministers also raised the question of voice for African countries in international financial institutions.
Gambia’s Bala-Gaye said his country is anticipating a decline in tourist traffic in light of the economic problems developed countries are likely to experience, and a drop in remittances by the Gambian Diaspora living in those countries. Cameroon’s minister explained how the delayed effects of the crisis are likely to affect the economy of his country as the prices of export commodities drop due to reduced demand in the traditional export markets.
The ministers stressed that the crisis underscores the need for African countries to institute reforms to create favorable climates for investment, especially in agriculture, that will in turn lead to increased production and self reliance in food. They emphasized the importance of creating goods and services while pursuing south-south cooperation among their countries, especially on the sharing of technical skills and experiences.
The ministers explained the steps that individual African countries have taken to deal with food and fuel crisis. They emphasized that investment in infrastructure and agriculture is crucial for realizing the envisaged growth and development of African economies, and they called on donors to focus on the two sectors as a matter of priority.
The ministers said the take away from Annual Meetings included opportunity to interact with and listen to each other, as well as to review programs already underway, part of their commitment as stakeholders.
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